I worked in IT in oz and london for a number of years and am...

I worked in IT in oz and london for a number of years and am familar with the successes and failures of listed IT startups on the asx, aim and nasdaq. The company is in a market segment where generating earnings is difficult - they will never be able to compete with MUCH bigger players in the same space. If they can't generate earnings, they are not and will not be a take over target - even if they develop a modest client base of local governments etc....

The way IT works is thus: even a tiny company or group of guys in a basement can produce something that stirs interest - even amongst the big boys. e.g. Netman, Packetman @ Comdex so long ago etc :)

But this devouring happens fast! If it doesn't happen its a question of what's in your next release...and you need a big team to compete with the big boys who have resources to develop new technologies for ideas with merit.

People who are 'just passing on info' should explain why this is a potential take over target - or clearly state that they don't really know before 'passing on info'...